Monday, November 29, 1999

Nalco divestment: Minister leaves it to the co

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New Delhi, May 4 (PTI) State-owned National Aluminium Company (Nalco) will take a view on the proposed 10 per cent disinvestment in it, the Lok Sabha was informed today. "The ministry of finance had made a reference to the ministry of mines in March to consider disinvestment of 10 per cent equity out of the remaining 87.15 per cent of total paid up capital held by the Government of India in Nalco. The ministry of mines has referred the matter to Nalco to study the advantages and disadvantages of the proposal," mines minister BK Handique told the Lower House in a written reply. Handique said 12.85 per cent of Nalco''s equity is already with the public and the proposal to offload another 10 per cent was made to broad-base the public ownership of the company and to unlock further value. Last month Handique had said the finaince ministry had evinced interest in selling 10 per cent stake in the Navratna firm, but the administrative ministry was yet to take a view on it. If the government divests 10 per cent stake in the aluminium producer, at the current share price about Rs 2,000 crore can be raised. However, the final amount will depend on the issue price of the FPO. The Nalco counter closed 1.61 per cent dwon at Rs 405.40 on the BSE today. The mines ministry is currently considering a follow-on public offer in ailing Hindustan Copper to raise an estimated about Rs 4,500 crore for each-the miner and the government. The Centre is likely to go ahead with divestment in public sector units including SAIL, Coal India and Hindustan Copper among others in the current fiscal to raise about Rs 40,000 crore.

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